Ad agencies cut. Service partners help stop the bleeding.

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bleed

Advertising agencies have gone under the knife and have surgically removed whole limbs and major organs just to keep afloat during this recession. Creative and production departments have taken big hits and many agencies are now so short staffed that they are forced to hire outsiders to help deploy advertising campaigns for their clients. According to Clickz.com, ad agencies are outsourcing more production work to outside sources because these providers are able to offer the “new, now and next” offerings that ad agencies just can’t keep up with. It’s evidence that it is becoming more and more difficult to be a one-stop-shop for both traditional and digital offerings. Could this be the wave of the future for ad agencies? Perhaps. However, I have seen this trend of contraction during tough times before. Inevitably, agencies bounce back and start hiring in-house staff to stop the blood flow.

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